If you did receive that all important call that your offer was accepted ‘Subject to Survey’ Then it is now time to make your move – Obtaining your mortgage

Top Tip … Please ask your sellers estate agent to take the property off of the market. If they accept then you can focus on getting the next part done efficiently

Getting a Mortgage in Principle to an actual Mortgage Offer

You need to get your Mortgage progressed from a “Mortgage in Principle” to a “Mortgage Offer”

1. Contact your Mortgage Adviser and they will then progress your mortgage application with your lender.
2. The lender will ask you to arrange a Valuation. The good news is you can combine your Survey and Valuation together. It is called the Homebuyer’s Report and you can purchase a RICS Homebuyer report online with First Time Buyer and receive a 10% discount off of the standard prices.
3. Once you have instructed a RICS Surveyor you will receive their independent opinion on both the value and the condition of the property. The report will highlight if any repairs need done. Please pass a copy of your report to your Mortgage Adviser.
4. Your Mortgage Adviser will then discuss with the lender the report and your lender will then, based on the information provided produce a “Mortgage Offer”.

If the valuation is lower than your purchase price then you need to think hard on why that is. Remember you did your homework initially and offered “Subject to Survey” a purchase price which may have been lower than the advertised asking price.

A little warning .. You should be concerned when you receive a low valuation on the property you are purchasing. You may want to reconsider or look at why this property might have been valued low

What do you do when you get a Valuation that is lower than your offer?

You could pull out of the transaction and find another property (Good job you took that abortive insurance out!)

OR

You can consider making a revised offer, based on the facts an information you now have from the RICS Homebuyers Report

Your lender will confirm the Mortgage Offer in writing to you and your Mortgage adviser will run through the offer so that you can be clear on what it says regarding what you can borrow and at what stage funds would be available to be transferred.

Sigh of relief – You are well on your way to Home Ownership – Big Smile!

Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. Think carefully before securing other debts against your home.